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Automated search vs Google API

I seem to hear conflicting stories about Google. While Google bans automated queries (https://support.google.com/websearch/answer/86640?hl=en), API seems to be an automated query, for instance, when it sends queries from an interface. So how does API differ from what is disallowed by Google?

The difference is that the search API is provided by Google for you to use on your own website and still respecting their terms, and those automated queries are not ! Those are made by other people or companies to scrape out information from Google, which they don't allow.

The difference is that their API is fully controlled and verified and you are going to use it with your own account attached to it. And basically you can't use their API for other purposes than they are meant to be used ! They limit the queries sent and stuff like that. Google knows how to keep away the spammers.